Total revenues for the fourth quarter were $13.4 million compared to $15.0 million the same quarter last year. For the fourth quarter, software license fees were $3.0 million compared to $3.4 million during the same period last year. Services and other revenues were $6.2 million compared to $6.8 million for the same period last year. Maintenance revenues were $4.3 million compared to $4.9 million during the same period last year. Operating income was $500,000 for the fourth quarter of fiscal 2004 compared to $1.6 million during the same period last year.

Income from continuing operations for the fourth quarter was $221,000 or earnings per share (diluted) from continuing operations of $0.01 compared to approximately $1.8 million, or earnings per share (diluted) from continuing operations of $0.08 the same quarter last year. The fourth quarter included a non-cash impairment charge of $382,000 related to a write down of a minority investment.

Total revenues for the twelve months ended April 30, 2004 were $54.7 million compared to $59.3 million for the previous fiscal year. Software license fees for fiscal year 2004 were $12.4 million compared to $12.5 million last year. Services and other revenues were $24.4 million compared to $26.9 million in the previous fiscal year. Maintenance revenues were $17.9 million compared to $19.9 million last year. For the twelve months ended April 30, 2004, the Company reported operating income of $4.0 million compared to $4.5 million the previous year. Income from continuing operations of approximately $5.7 million or earnings per share (diluted) of $0.23, compared to income from continuing operations of $5.5 million, or earnings per share (diluted) of $0.24 for the twelve months ended April 30, 2003.

"While we continue to experience a difficult selling environment for software, this quarter represents our thirteenth consecutive quarter of profitability,” stated James C. Edenfield, president and CEO of American Software. “Our sustained profitability has strengthened our balance sheet and allowed the Company to provide a tangible benefit to our shareholders with a quarterly dividend.”

The overall financial condition of the Company remains strong, with cash and investments of approximately $66.4 million and zero debt as of April 30, 2004. The Company’s cash and investment position increased by approximately $5.8 million compared to April 30, 2003. During the fiscal year, the Company paid a $.06 cent per share quarterly dividend of approximately $4.1 million.

Highlights for the fourth quarter and fiscal year 2004 include:

Customers

• Notable new and existing customers placing orders with the Company during the quarter of fiscal year 2004 include: A.O. Smith Water Products Company, Carhartt, Inc., The Coleman Company, Inc., Coty US LLC, Corning Cable Systems, Fischer Scientific, Intertape Polymer Group, Lululemon Athletica, and Premier Farnell.
• The Company’s 86% owned subsidiary, Logility, Inc. (NASDAQ: LGTY) announced that Delco Remy International, Inc., a leading worldwide manufacturer and remanufacturer of automotive electrical and drivetrain/powertrain products, purchased its Logility Voyager Solutions to improve inventory management and increase operational efficiencies across its Electrical Aftermarket business.
• Chivas Brothers, the Scotch whisky business of Pernod Ricard and the world's third largest producer of Scotch whisky, implemented Logility Voyager Solutions to improve inventory management, including forecasting, planning and replenishment activities. The company will use Logility Voyager Demand Planning to forecast customer demand and to support the ongoing development of vendor managed inventory (VMI) programs.
• Pernod SA, a French division of Groupe Pernod-Ricard that produces Pastis 51, Suze and other leading spirits, extended its purchase of Logility Voyager Solutions to simplify the overall supply chain planning process by supporting a centralized production planning process and reducing raw material inventories.
• Logility named Katun Corporation, the world’s leading service parts supplier of imaging supplies, as the fifth annual John Hewson Sailing to New Heights with Logility Award winner. The award recognizes the elite Logility customer who has leveraged innovation and collaboration to drive measurable business improvements and supply chain excellence through the deployment of Logility Voyager Solutions. Katun deployed Logility Voyager Solutions on time and on budget to streamline its global Sales and Operations Planning (S&OP) process between corporate sales, finance, distribution, manufacturing and marketing throughout the company. Results from the improved planning process include increased forecast accuracy, reduced inventory investment and improved product availability.
• Logility presented 2004 Logility Leadership Awards to:
  • Rockline Industries, North America’s largest supplier of coffee filters and private label wipes, deployed Logility Voyager Solutions to reduce overall transportation costs, increase visibility to carriers and improve its ability to monitor key performance indicators. Rockline implemented Logility in less than six weeks.
  • Shaw Industries, the world’s largest producer of carpet, rugs, ceramic, hardwood and laminate flooring, selected Logility to gain better control of its inventory investment. The company has used Logility Voyager Solutions to enable one-number forecasting and improve forecast accuracy by 15%, raise customer satisfaction levels for home builders, better synchronize supply with demand, increase visibility for a 30% reduction in obsolete inventory, and improve overall visibility and communications across its business.
  • Smead, a leading manufacturer and distributor of paper filing supplies and records management software, implemented Logility Voyager Solutions to improve information sharing, increase forecast accuracy and improve visibility of promotional plans. Smead has used Logility to support a significant growth in revenue with minor growth in inventory levels, achieve higher customer order fill rates, increase visibility of available inventory, and improve collaboration with customers as well as internal departments.
• Logility had approximately 60 customers go live with new deployments or significant upgrades of Logility Voyager Solutions during fiscal year 2004. This impressive number of “go lives” underscores Logility’s ability to deploy rapidly to accelerate business results for its customers.
• During the quarter, the Company’s subsidiary New Generation Computing Inc. (NGC) announced that Carhartt, Inc. selected The Production Manager (TPM), NGC’s shop-floor control and manufacturing execution software. TPM implementation has begun at Carhartt’s North American cutting, sewing, finishing and distribution facilities, where the software will automate the company’s production and payroll functions. Specifically, the software will enable Carhartt to better track employee performance, monitor work in progress, calculate gross pay and develop multiple management reports. “We selected NGC’s TPM shop-floor control software because it is recognized as the industry standard by leading apparel manufacturers,” said Mike Vendal, CIO of Carhartt. “We’re excited about standardizing our factories with TPM and partnering with NGC.”
• The Company announced a new program intended to expand the value of Continuing Support Services for its existing Enterprise Resource Planning (ERP) customers. The new maintenance program is designed to offer customers an opportunity to define the emphasis of their maintenance support, participate more fully in new release strategy, and offer new flexibility and options with respect to obtaining upgrades and new functionality.
• Logility’s Connections 2004: Supply Chain Reality: Real World, Real Time, Real Results took place March 24-26 in Atlanta and offered attendees the opportunity to learn from the real-world experiences of others and equip themselves for the next wave of demand-driven supply chain planning challenges and triumphs. The agenda delivered insightful presentations, including an executive panel and best practices panel on successful strategies for tackling today’s business challenges and deploying supply chain management solutions to drive value; industry perspectives from AMR Research and Consumer Goods Technology magazine; and breakouts featuring successful Logility Voyager Solutions deployments with speakers representing every major industry. Logility conducted a seminar entitled “Supply Chain Management for High Performance Companies” featuring presenters from Chivas Brothers, Farnell InOne, Oliver Wight, IBM and Logility. The speakers addressed how to leverage consensus-based supply chain solutions to gain competitive advantages such as lower inventories, reduced operating costs, maximized customer service and revenues, increased profitability and higher return on existing supply chain assets.

Products and Technology

• During the fiscal year, Logility announced the general availability of Logility Voyager Solutions™ 7.0, the latest release of Internet-based products that support real-time, global visibility of forecasts, orders, inventories, deliveries and key performance indicators across the supply chain. Logility Voyager Solutions 7.0 help companies reduce supply chain costs, optimize inventory investments, increase sales and improve customer service through innovative demand management, optimized supply chain planning, synchronized production, streamlined warehouse and improved transportation management.
• Logility outlined plans to support full Radio Frequency Identification (RFID) compliance across its supply chain planning, warehouse and logistics products. Logility Voyager WarehousePRO® will initially support RFID technology within the warehouse at the carton, pallet and container level to streamline the shipment of goods to retail customers and accelerate the receipt of products into distribution centers.
• Computing released REDHORSE Enterprise ERP, a comprehensive enterprise-resource-planning (ERP) system designed specifically for apparel and sewn products enterprises. REDHORSE is a new component of the NGC SQL Series, a software suite for the sewn products industry that is built on Microsoft’s SQL Server technology with integration to Word and Excel. The NGC SQL Series combines business applications – e-PDM, or Internet Product Development Manager; e-SPS, or Internet Sourcing and Production System; and REDHORSE – that help retailers, manufacturers, brand managers and other companies involved with the design and production of sewn products to increase speed to market, reduce costs, manage by exception and enhance workflow.